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Yanka [14]
3 years ago
8

In one year, Hitech Microdevices will pay a common stock dividend of $4.35. You predict that you will be able to sell your Hitec

h stock for $57 per share after 1 year. If you require a rate of return of 16 percent on Hitech stock, how much would you be willing to pay now for a share of the stock?
Business
1 answer:
Andre45 [30]3 years ago
7 0

Answer:

Price to be paid now = $52.89

Explanation:

<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return. </em>

T<em>he stock would be held for just a period, hence we would use the single period return model. This is given as follows:</em>

Price now  = D/(1+r) + P×(1+r)

Dividend , r - rate of return, P -year-end price of stock

Dividend = 4.35, r-16%, P- 57

Price = 4.35/(1.16)  + 57/(1.16)= $52.89

Price to be paid now = $52.89

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policy economics is the application of the principles of economics to decision making (choices) by the various arms of the
saveliy_v [14]

Policy economics is the application of the principles of economics to decision making (choices) by the various arms of the government sector.

<h3>What is Policy economics?</h3>
  • The methods for determining tax rates, government spending, the money supply, and interest rates, as well as the labor market, national ownership,
  • And many other areas of government interventions in the economy, are all included in the concept of the economy of governments.
  • The federal government works to achieve three policy objectives in order to maintain a robust economy: stable pricing, full employment, and economic growth.
  • The federal government has additional objectives to ensure sound economic policy in addition to these three policy goals.
  • The Economic Policy (EP) Concentration's goal is to give policy professionals the abilities they need to develop and assess policy options, with a focus on how economics methods may be used to solve practical policy issues.

Learn more about Economic Policy here:

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3 0
2 years ago
When journalizing a transaction, a short explanation may be written A : on the line following each journal entry. B : at the bot
larisa [96]

Answer:

The correct answer is letter "A": on the line following each journal entry.

Explanation:

<em>Brief descriptions</em> can be added after each entry of the journal whenever necessary. The note must be included in the next line of the entry that might need extra explanation or clarification. <em>Accuracy </em>is relevant for accounting purposes since companies tend to be audited and they must demonstrate their transactions are transparent.

4 0
3 years ago
A summary of the time tickets for the current month follows:
tester [92]

Answer and Explanation:

The journal entry to record the factory labor cost is shown below:

Work in progress  ($2,060 + $1,710 + $3,130 + $3,520 + $2,150 + $1,410 + $9,540) $23,520

Factory Overhead $10,980

         To wages payable  $34,500

(to record the factory labor cost)

Here work in process and factory overhead is debited as it increased the assets and expenses and credited the wages payable as it also increased the liabilities  

8 0
3 years ago
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 150 employees and occupies 43,000
BaLLatris [955]

Answer:

b. $98,625.

Explanation:

Maintenance budget : $99,000

Assembly area: 43,000

Painting Area: 29,000

Maintenance budget allocated to assembly (M):

M=99,000*\frac{43,000}{43,000+29,000}\\M=59,125

Administration budget : $79,00

Assembly employees: 150

Painting employees: 150

Administration budget allocated to assembly (A):

A=79,000*\frac{150}{150+150}\\M=39,500

Therefore, the total amount of indirect factory expenses that should be allocated to the Assembly Department for the current period is:

A = M + P\\A= 59,125 +39,500\\A=98,625

6 0
3 years ago
The following information is available for the first month of operations for Brandt Inc.: Sales $570,000 Gross profit 210,000 In
umka21 [38]

Answer:

Simps will answer for you not me

Explanation:

well you see a simp is someone who is really attracted to girls and I just aint about that so good lucker and there is your answer

5 0
4 years ago
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